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FedEx (FDX; Baa2/BBB; S) Job Cuts

TRANSPORTATION
  • It will cut 1700-2000 staff in Europe back-office and commercial teams. Pre-tax cost of severance benefits & legal will total $250-$375m which it will incur through FY26. Savings expected to total $125-175m/year beginning in FY27.
  • Total staff we see at 500k (Q3 stats report) so its cutting 0.35-0.4% here. FY to date salary and employee benefits was running at 36% of revenues, in line with recent levels.
  • Fiscal for it is 12-months to May. FY24 results come in 2 weeks (Tuesday after US close).
  • 8K notice here.

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